sandbox Malta Jersey euro fiat exchange cryptocurrency Binance jurisdiction regulation 12 Jun 2018
Binance is the world’s largest cryptocurrency exchange in terms of daily trading volume with just over $1.3b. Considering how recent the exchange is, founded in July 2017 after a $15 million ICO, it is pretty impressive that they have managed to emerge as the world’s leading exchange.
Binance exchange is said to be introducing cryptocurrency and Euro pairs later in the year, as the exchange’s founder and CEO Changpeng Zhao said to Bloomberg.
They recently relocated in the small mediterranean nation of Malta back in March, taking advantage of the friendly government outlook on crypto. They will launch crypto/euro pairs from Malta later this year from Malta and will add more fiat currencies in the future.
An overwhelming majority of crypto exchanges do not offer Fiat pair to avoid regulatory scrutiny, but the ones that do enjoy the growth that fiat options provide. This has let the users and investors of cryptocurrencies with very few options for cashing out. Even worse, in some countries banks banned deposits and withdrawals from crypto exchanges.
Further than Malta, Binance is eyeing the small island of Jersey, which is a 100,000 population nation with its own financial, legal judicial system. Jersey is parliamentary democracy under a constitutional monarchy, which means that although it is not part of the United Kingdom, but the UK is responsible for the islands defence. What Jersey is offering Binance is what they called ‘Jersey Sandbox’. It offers companies the opportunity to develop, test, and launch new innovative products, without the high cost and complex legal, government and regulatory barriers they would face in other cities or markets such as London.
It seems clear that Binance is after small countries jurisdictions, to test and shape them and settle some of its operations. Eventually they are trying to create past successful cases of pro crypto jurisdictions.